Illinois Coalition Against Predatory Home Loans Joins Gov. Blagojevich as He Signs Landmark Predatory Lending Legislation 8/19/2003
From: Tracy Van Slyke or Amalia NietoGomez, 312-243-3035, both of the National Training and Information Center; Web site: http://www.ntic-us.org CHICAGO, Aug. 19 -- On Wednesday, Aug. 20 at 10 a.m., members of the Illinois Coalition Against Predatory Home Loans will join Gov. Rod Blagojevich as he signs SB1784, one of Illinois' most significant consumer protection acts. The bill will be signed in front of an abandoned building at 6351 S. Fairfield, which has fallen victim to loans with abusive practices. Illinois Attorney General Lisa Madigan, Speaker Michael Madigan and Chicago Mayor Richard M. Daley are also expected at the press conference. SB1784, known as the High Risk Home Loan Act, will protect Illinois homeowners from abusive mortgage practices of predatory lenders. SB1784 builds on the Illinois Anti-Predatory Lending Regulations by offering additional protections to Illinois homeowners. The Illinois Coalition spearheaded the passage of the regulations in April 2001. SB1784 has three key provisions: -- SB1784 will prohibit a number of predatory practices on high-risk loans, including prepayment penalties, financing single premium credit insurance, and flipping. -- Loans will be considered "high risk" if they charge an excess amount in fees (more than five percent in fees of the total loan amount) or a high annual percentage rate -- SB1784 includes assignee liability provisions, making the lender holding the loan responsible under certain circumstances. Borrowers will be able to take some individual legal action within five years of the loan origination or during a foreclosure proceeding or default against the lender holding the loan paper. The Illinois Coalition Against Predatory Home Loans, coordinated by the National Training and Information Center (NTIC), has been working to halt predatory and abusive practices for the last four years. The Coalition has included over 100 organizations ranging from community groups, consumer advocates, governmental bodies, churches, religious organizations, lending organizations, and statewide organizations. Illinois Coalition groups that support the passage of the legislation, include: the Central Illinois Organizing Project, Interfaith Housing Center of the Northern Suburbs, Leadership Council for Metropolitan Open Communities, Maywood Citizens Fighting Against Crime, National Center on Poverty Law, the National Training and Information Center, Neighborhood Housing Services of Chicago, Inc., Rogers Park Community Development Corp., South Austin Coalition Community Council, Southwest Organizing Project, and the Woodstock Institute. NTIC is a 32-year-old Chicago-based non-profit that has served as a resource center by providing training and research on issues of concern to grassroots neighborhood groups. For more information, please visit: http://www.ntic-us.org/issues/predatorylending/pred-fighting-in-i llinois.htm |